- Grupa Azoty Zakłady Azotowe Kędzierzyn S.A. scaled down Fertilizer Production Unit to 43% capacity on August 24th 2022 due to record high natural gas prices
- Natural gas prices on European exchanges soared from EUR 72/MWh on February 22nd 2022 to EUR 280.50/MWh on August 23rd 2022
- Availability of gas is not a problem, but the current situation in the gas market is beyond the control of Grupa Azoty Group
- Company will make further business decisions based on monitoring of raw material prices and production profitability
Due to record high prices for natural gas, the main production feedstock used by Grupa Azoty Zakłady Azotowe Kędzierzyn S.A., on August 23rd 2022 the Company’s Management Board decided to scale down the operation of the Fertilizer Production Unit to the minimum capacity of 43% as of August 24th 2022.
As a consequence of Russia’s aggression against Ukraine, since February 24th 2022 natural gas prices on the European exchanges have been soaring to extraordinary, historically high levels. Over the past six months, gas prices surged from EUR 72/MWh on February 22nd 2022 to EUR 280.50/MWh on August 23rd 2022.
Although there are no problems with the availability of gas, the current situation in the gas market, which determines the profitability of production activities, is extraordinary and completely beyond the control of the Grupa Azoty Group, and could not have been predicted.
The Company constantly monitors the price level of all raw materials and commodities as well as the profitability of production processes, and will make further business decisions based on the results of the monitoring.
